What Is a Zichron Devarim (Letter of Intent) in Israel?

A Zichron Devarim (זיכרון דברים) — literally "memorandum of things said" — is a preliminary written document recording the price and key terms agreed between a buyer and seller, ahead of the formal Heskem Rechisha.

Critical warning: unlike a letter of intent in the US or UK, Israeli courts have repeatedly treated a Zichron Devarim as legally binding when it contains the essential terms of a sale — property, price, and parties. Signing what looks like a simple note can obligate you to complete the purchase.

Why it matters for a buyer: never sign any document — including a "simple" Zichron Devarim — before your Israeli lawyer has reviewed it. Sellers and agents sometimes present one before a buyer has engaged legal counsel or completed due diligence.

Source: Israeli Contract Law (General Part) 5733-1973; Israeli case law on binding preliminary agreements